Luddites, the industrial revolution, and the demographic transition
Technological change was unskilled-labor-biased during the early industrial revolution, but is skill-biased today. This implies a rich set of non-monotonic macroeconomic dynamics which are not embedded in extant unified growth models. We present historical evidence and develop a model which can endo...
| Main Authors: | , , |
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| Format: | Journal article |
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Springer US*
2013
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| _version_ | 1826303721649209344 |
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| author | O'Rourke, K Rahman, A Taylor, A |
| author_facet | O'Rourke, K Rahman, A Taylor, A |
| author_sort | O'Rourke, K |
| collection | OXFORD |
| description | Technological change was unskilled-labor-biased during the early industrial revolution, but is skill-biased today. This implies a rich set of non-monotonic macroeconomic dynamics which are not embedded in extant unified growth models. We present historical evidence and develop a model which can endogenously account for these facts, where factor bias reflects profit-maximizing decisions by innovators. In a setup with directed technological change, and fixed as well as variable costs of education, initial endowments dictate that the early industrial revolution be unskilled-labor-biased. Increasing basic knowledge then causes a growth takeoff, an income-led demand for fewer but more educated children, and a transition to skill-biased technological change in the long run. © 2013 Springer Science+Business Media New York. |
| first_indexed | 2024-03-07T06:07:01Z |
| format | Journal article |
| id | oxford-uuid:ee3128b7-5741-49a8-9280-934014cc2c96 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T06:07:01Z |
| publishDate | 2013 |
| publisher | Springer US* |
| record_format | dspace |
| spelling | oxford-uuid:ee3128b7-5741-49a8-9280-934014cc2c962022-03-27T11:30:51ZLuddites, the industrial revolution, and the demographic transitionJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:ee3128b7-5741-49a8-9280-934014cc2c96Symplectic Elements at OxfordSpringer US*2013O'Rourke, KRahman, ATaylor, ATechnological change was unskilled-labor-biased during the early industrial revolution, but is skill-biased today. This implies a rich set of non-monotonic macroeconomic dynamics which are not embedded in extant unified growth models. We present historical evidence and develop a model which can endogenously account for these facts, where factor bias reflects profit-maximizing decisions by innovators. In a setup with directed technological change, and fixed as well as variable costs of education, initial endowments dictate that the early industrial revolution be unskilled-labor-biased. Increasing basic knowledge then causes a growth takeoff, an income-led demand for fewer but more educated children, and a transition to skill-biased technological change in the long run. © 2013 Springer Science+Business Media New York. |
| spellingShingle | O'Rourke, K Rahman, A Taylor, A Luddites, the industrial revolution, and the demographic transition |
| title | Luddites, the industrial revolution, and the demographic transition |
| title_full | Luddites, the industrial revolution, and the demographic transition |
| title_fullStr | Luddites, the industrial revolution, and the demographic transition |
| title_full_unstemmed | Luddites, the industrial revolution, and the demographic transition |
| title_short | Luddites, the industrial revolution, and the demographic transition |
| title_sort | luddites the industrial revolution and the demographic transition |
| work_keys_str_mv | AT orourkek ludditestheindustrialrevolutionandthedemographictransition AT rahmana ludditestheindustrialrevolutionandthedemographictransition AT taylora ludditestheindustrialrevolutionandthedemographictransition |